Enova International, Inc. (NYSE:ENVA) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Enova International a “Moderate Buy”: Eight of nine analysts recommend buying the stock, with one hold rating and an average 12-month price target of $239.
• Quarterly results exceeded expectations: Enova reported adjusted earnings of $4.48 per share versus the $4.42 consensus estimate, while revenue rose 25.7% year over year to approximately $1.01 billion.
• Investor risks include insider selling and legal investigations: Insiders sold more than $19.6 million of stock over the past 90 days, while law firms are investigating potential securities-fraud claims; institutional investors nevertheless own about 89% of the shares.

Enova International, Inc. (NYSE:ENVA - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the nine research firms that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a hold rating and eight have given a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $239.00.

ENVA has been the topic of several analyst reports. Maxim Group lowered their target price on shares of Enova International from $285.00 to $220.00 and set a "buy" rating on the stock in a research report on Monday, October 26th. Citizens Jmp increased their price target on shares of Enova International from $215.00 to $220.00 and gave the company a "market outperform" rating in a report on Friday, October 23rd. Citigroup reiterated a "market outperform" rating on shares of Enova International in a research report on Friday, October 23rd. Jefferies Financial Group cut their target price on Enova International from $300.00 to $275.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. Finally, Zacks Research cut Enova International from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 16th.

Insider Transactions at Enova International

In other Enova International news, insider Kirk Chartier sold 27,977 shares of the business's stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $171.51, for a total value of $4,798,335.27. Following the transaction, the insider owned 76,995 shares of the company's stock, valued at approximately $13,205,412.45. The trade was a 26.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Steven E. Cunningham sold 15,305 shares of the stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $172.00, for a total value of $2,632,460.00. Following the sale, the chief executive officer owned 118,789 shares in the company, valued at $20,431,708. The trade was a 11.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 105,758 shares of company stock valued at $19,657,836. Corporate insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ENVA. Bank of New York Mellon Corp bought a new stake in shares of Enova International in the 2nd quarter valued at about $38,453,000. Tieton Capital Management LLC acquired a new stake in shares of Enova International in the 2nd quarter valued at approximately $26,577,000. Alyeska Investment Group L.P. acquired a new stake in shares of Enova International in the 2nd quarter valued at approximately $25,749,000. Amundi boosted its stake in Enova International by 66.6% during the 2nd quarter. Amundi now owns 207,684 shares of the credit services provider's stock worth $49,996,000 after acquiring an additional 83,002 shares during the last quarter. Finally, Prescott Group Capital Management L.L.C. boosted its stake in Enova International by 49.4% during the 3rd quarter. Prescott Group Capital Management L.L.C. now owns 135,898 shares of the credit services provider's stock worth $22,710,000 after acquiring an additional 44,946 shares during the last quarter. 89.43% of the stock is owned by institutional investors.

Trending Headlines about Enova International

Here are the key news stories impacting Enova International this week:

• Positive Sentiment: Enova’s latest quarterly results were better than expected, with adjusted earnings of $4.48 per share versus the $4.42 consensus and revenue of approximately $1.01 billion. Revenue increased 25.7% year over year, supporting the company’s earnings-growth outlook. Analysts remain broadly constructive, with eight Buy ratings and an average price target of $239. Enova earnings and valuation analysis
• Neutral Sentiment: Institutional ownership remains high at about 89%, and several large investment managers increased their positions during recent quarters. This indicates continued support from professional investors, although it has not offset recent selling pressure. Enova institutional and insider trading data
• Negative Sentiment: Glancy Prongay Wolke & Rotter LLP is continuing to investigate possible securities fraud claims involving Enova. Pomerantz LLP separately announced an investor investigation. The announcements do not establish wrongdoing, but they increase potential legal costs, reputational risk and uncertainty for shareholders. Glancy Prongay Wolke & Rotter investigation Pomerantz investor investigation
• Negative Sentiment: Company insiders sold substantial amounts of stock: Chairman David Fisher sold roughly $4.04 million across October 27–28, CEO Steven Cunningham sold $2.63 million, and insider Kirk Chartier sold $4.80 million. The sales reduced their holdings by approximately 3% to 27% and may be interpreted as a near-term confidence concern, even though insider selling can also reflect personal financial planning. SEC insider trading filing

Enova International Price Performance

Shares of NYSE:ENVA opened at $173.56 on Friday. The company's fifty day moving average is $192.99 and its two-hundred day moving average is $183.74. The company has a market cap of $4.25 billion, a P/E ratio of 11.95 and a beta of 1.28. Enova International has a 12-month low of $118.28 and a 12-month high of $267.45. The company has a quick ratio of 18.91, a current ratio of 18.92 and a debt-to-equity ratio of 3.43.

Enova International (NYSE:ENVA - Get Free Report) last issued its earnings results on Thursday, October 22nd. The credit services provider reported $4.48 EPS for the quarter, topping the consensus estimate of $4.42 by $0.06. The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $1 billion. Enova International had a return on equity of 27.25% and a net margin of 10.47%. Enova International's revenue was up 25.7% compared to the same quarter last year. During the same quarter last year, the firm posted $3.36 earnings per share. Equities analysts expect that Enova International will post 16.32 earnings per share for the current fiscal year.

About Enova International

Enova International, Inc is a financial technology company that provides online financial services to consumers and small businesses. Its offerings include consumer installment loans and lines of credit, as well as small-business financing products designed to provide access to working capital. The company serves customers who may have limited access to traditional bank credit and uses data-driven underwriting and technology-enabled platforms in its lending operations.

Enova markets its products through brands including CashNetUSA and NetCredit, which provide consumer financial services, and OnDeck, which focuses on lending to small businesses.

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